Tax Exemption

bowlhead99

colsten said:

badger09 said:

colsten said:

Gains from shares (annual dividends as well as proceeds from sales) are treated as Capital Gains, and are subject to CG tax, not income tax. Everyone has an annual CG allowance. 

........annual dividends ..........treated as Capital Gains, and are subject to CG tax, not income tax ?

Are we saying the same thing?

Badger is saying your comment back to you with a question mark on the end of it (a querying tone is hard to convey on a forum). She is not saying she agrees with it.

Your comment, "... annual dividends as well as proceeds from sales) are treated as Capital Gains" is very misleading because annual dividends are not treated as capital gains at all, dividends are a type of income and accounted for under income tax.

The excess of sales proceeds over allowable investment costs is what is considered 'gains' for the capital gains regime, and if the gains are £20k ("the investment wouldn't make any more than say 20k") then some but not all of the £20k of gains would be covered by the annual exemption if the exemption has not already been used on something else this year.

badger09

Thank you bowlhead99, your 2nd paragraph is exactly what I was trying to say

colsten

Well I stand corrected then. I don't have any unwrapped investments myself, so the Q of taxation doesn't arise for me. I should probably refrain from commenting about stuff I don't actually know (although I thought I did actually know). Apologies for confusion.

kuratowski

You're not alone.  I'm constantly learning the extent of my ignorance by reading this forum!

bowlhead99

colsten said:

Well I stand corrected then. I don't have any unwrapped investments myself, so the Q of taxation doesn't arise for me. I should probably refrain from commenting about stuff I don't actually know (although I thought I did actually know). Apologies for confusion.

I was pretty surprised to see your post because (although most of us don't pay dividend tax), I assumed that in 5+ years on here you would have heard about income received from investments (shares, funds, properties etc) being taxable under income tax regime, while making a 'capital gain' on a share or fund or property is to do with selling something for more than you paid for it. 

Ah well we all live and learn etc

badger09

bowlhead99 said:

colsten said:

Well I stand corrected then. I don't have any unwrapped investments myself, so the Q of taxation doesn't arise for me. I should probably refrain from commenting about stuff I don't actually know (although I thought I did actually know). Apologies for confusion.

I was pretty surprised to see your post because (although most of us don't pay dividend tax), I assumed that in 5+ years on here you would have heard about income received from investments (shares, funds, properties etc) being taxable under income tax regime, while making a 'capital gain' on a share or fund or property is to do with selling something for more than you paid for it. 

Ah well we all live and learn etc

Indeed. Every day is a (home) school day

AnotherJoe

colsten said:

Gains from shares (annual dividends as well as proceeds from sales) are treated as Capital Gains

Err, no they are not 

badger09

AnotherJoe said:

colsten said:

Gains from shares (annual dividends as well as proceeds from sales) are treated as Capital Gains

Err, no they are not 

Already been pointed out to colsten

@ colsten
Might be an idea to edit your post, though I realise you can't edit the subsequent quotes